Walmart Results Drag Wall Street As S&P Extends Losing Streak/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street slipped Thursday after Walmart reported weaker-than-expected profits despite higher revenue. The S&P 500 headed for its fifth consecutive loss, while tech stocks steadied following recent volatility. Investors await Fed Chair Jerome Powell’s Jackson Hole speech for clues on interest rates.
Wall Street Market Update Quick Looks
- S&P 500 down 0.3%, eyeing five-day losing streak.
- Dow falls 236 points; Nasdaq dips slightly.
- Walmart slides 4% after profit misses expectations.
- AI stocks show smaller moves after sharp swings.
- Coty tumbles 20% on surprise quarterly loss.
- Nordson rises 7.4% after strong earnings beat.
- Jobless claims rise, mid-Atlantic manufacturing contracts.
- Treasury yields edge up; Fed rate cuts expected in September.
- Powell set to speak at Jackson Hole summit Friday.
- European, Japanese markets also see declines.
Deep Look: Walmart Miss, Fed Uncertainty Extend Wall Street’s Losing Streak
NEW YORK (AP) — U.S. markets slipped again Thursday, weighed down by disappointing earnings from Walmart and lingering investor anxiety about the Federal Reserve’s next move on interest rates. The S&P 500 lost 0.3%, extending its losing streak to a fifth straight session, while the Dow Jones Industrial Average dropped 236 points (0.5%) and the Nasdaq composite fell 0.1%.
The pullback comes just a week after the S&P 500 hit a new all-time high, underscoring the market’s fragile sentiment as traders balance strong corporate growth against fears of slowing demand and shifting monetary policy.
Walmart’s Results Disappoint Despite Sales Growth
Shares of Walmart sank 4% after the nation’s largest retailer reported weaker-than-expected profits for the spring quarter. Revenue growth and an upgraded full-year profit forecast were not enough to satisfy Wall Street, where analysts had set high expectations given Walmart’s strong 13.5% stock gain so far this year.
The Bentonville-based retail giant’s miss dragged down the broader retail sector and raised questions about consumer strength heading into the fall shopping season.
Tech Stocks Under Scrutiny
Big Tech, which has been central to the stock market’s rally, faced heightened pressure to prove earnings strength. Analysts have cautioned that valuations tied to artificial intelligence (AI) may have surged too far, too quickly.
This week, AI leaders experienced volatile trading:
- Palantir Technologies slipped another 0.2% after nearly falling 9% the prior day.
- Nvidia, often considered the face of the AI boom, managed a modest 0.6% gain.
Despite smaller moves Thursday, the sharp swings highlight the delicate balance between optimism around AI and concerns about inflated valuations.
Coty Collapses, Nordson Shines
Not all earnings news was gloomy. Coty Inc., owner of CoverGirl and other beauty brands, plunged 20.6% after posting a quarterly loss, shocking investors who expected a profit. Company executives cited uncertainty over tariffs and consumer caution as reasons for weaker sales.
On the upside, Nordson Corp., a manufacturer of precision dispensing systems, surged 7.4% after posting earnings and revenue above analyst forecasts.
Bond Market Moves, Economic Data Weakens
Treasury yields edged slightly higher after a pair of economic reports suggested pockets of weakness in the U.S. economy:
- Jobless claims rose last week, signaling potential increases in layoffs.
- Mid-Atlantic manufacturing contracted unexpectedly in August.
The 10-year Treasury yield ticked up to 4.30%, while the two-year yield rose to 3.75%.
Traders continue to bet that the Federal Reserve will cut interest rates at its September meeting—the first reduction this year. While rate cuts would support borrowing and potentially lift markets, they also risk fueling inflation.
Powell’s Jackson Hole Speech Looms
All eyes are now on Fed Chair Jerome Powell, who will speak Friday at the Jackson Hole Economic Symposium, an annual gathering of central bankers. Powell’s remarks often carry heavy market weight and could either reinforce hopes for a rate cut or temper expectations.
The event has historically been a stage for major Fed policy signals, adding to investor caution ahead of the weekend.
Global Markets Also Weaken
Overseas, sentiment was equally cautious.
- Germany’s DAX index fell 0.3% after the U.S. and EU announced a tentative trade framework.
- Japan’s Nikkei 225 dropped 0.6%, as factory activity data showed continued contraction in August.
- Other European indexes saw modest declines, reflecting global growth concerns.
Outlook
Wall Street’s pullback reflects both profit-taking after a record-setting run and genuine concern over economic momentum. While corporate earnings remain broadly solid, retailers’ performance and softening labor data suggest the U.S. economy is slowing unevenly.
If Powell confirms a September rate cut, markets may find fresh support. Until then, analysts expect continued volatility.
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